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Joel Reichert and Andrea Larson, University of Virginia

Synopsis

This case analyses how large companies like IKEA can retain their entrepreneurial roots and innovative capacities.

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In 1996, IKEA' s $5 billion in revenues made it the world's largest retailer of furniture and home furnishings. IKEA extended its activities as an innovator through its incorporation of The Natural Step framework for assessing the ecological and social sustainability of commercial activity. This case analyses how large companies like IKEA can retain their entrepreneurial roots and innovative capacities through various means, including the management of global networks of alliances, internal systems that encourage innovation, and a strong corporate culture. Class discussion focuses on entrepreneurship and innovation in large firms, environmentally responsible strategies and network ties, leadership, and corporate culture/values.